Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Q4FY12 result highlights
Quarterly performance: ENIL reported a standalone revenue growth of 14% at Rs935m (estimates of Rs904m), EBITDA
growth of 1% at Rs329m (estimates of Rs344m) and operational PAT growth of 11% at Rs196m (estimates of Rs200m). With
respect to consolidated financials (including event management business), revenues stood at Rs955m, EBITDA at Rs331m
and PAT at Rs200m.
Key positives: Robust revenue growth in a lack-luster ad environment, driven by innovations in content delivery and
activation services.
Key negatives: The ad environment continues to remain under pressure. Innovations undertaken by ENIL have higher costs
attached, which has impacted margins during the quarter. Admin expenses include a reversal of Rs70m due to withdrawal
of private treaty provision. Excluding the impact of the same, margin erosion would have been sharper.
Impact on financials
Factoring in the pressure in the overall ad environment, we have revised our EPS estimates downwards by 9% for FY13.
Valuations & view
We have been guarded in our opinion on the Indian radio industry given its limited scalability (industry profits are less than
Rs1.4bn) and consequently limited scope for ENIL to deploy capital and generate profits. While we continue to have
reservations on the space, we are comforted to see the urgency in ENIL to expand their offering across other avenues such
as activation services and innovations in content delivery. However, the tough ad environment would exert pressure on
ENIL’s operational performance in the near term. We believe Phase III will be a positive trigger for the industry. With critical
changes like networking, consolidation and multiple frequencies being implemented as part of Phase III, we believe the
economics of the radio industry could significantly improve. ENIL with Rs2.2bn of cash is well funded to participate in the
Phase III. Having said that, we believe the bidding process (with regards acquisition cost for licenses) remains a critical
monitorable. Trading at 15x FY13E earnings, we maintain Neutral with a target price of Rs250.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Q4FY12 result highlights
Quarterly performance: ENIL reported a standalone revenue growth of 14% at Rs935m (estimates of Rs904m), EBITDA
growth of 1% at Rs329m (estimates of Rs344m) and operational PAT growth of 11% at Rs196m (estimates of Rs200m). With
respect to consolidated financials (including event management business), revenues stood at Rs955m, EBITDA at Rs331m
and PAT at Rs200m.
Key positives: Robust revenue growth in a lack-luster ad environment, driven by innovations in content delivery and
activation services.
Key negatives: The ad environment continues to remain under pressure. Innovations undertaken by ENIL have higher costs
attached, which has impacted margins during the quarter. Admin expenses include a reversal of Rs70m due to withdrawal
of private treaty provision. Excluding the impact of the same, margin erosion would have been sharper.
Impact on financials
Factoring in the pressure in the overall ad environment, we have revised our EPS estimates downwards by 9% for FY13.
Valuations & view
We have been guarded in our opinion on the Indian radio industry given its limited scalability (industry profits are less than
Rs1.4bn) and consequently limited scope for ENIL to deploy capital and generate profits. While we continue to have
reservations on the space, we are comforted to see the urgency in ENIL to expand their offering across other avenues such
as activation services and innovations in content delivery. However, the tough ad environment would exert pressure on
ENIL’s operational performance in the near term. We believe Phase III will be a positive trigger for the industry. With critical
changes like networking, consolidation and multiple frequencies being implemented as part of Phase III, we believe the
economics of the radio industry could significantly improve. ENIL with Rs2.2bn of cash is well funded to participate in the
Phase III. Having said that, we believe the bidding process (with regards acquisition cost for licenses) remains a critical
monitorable. Trading at 15x FY13E earnings, we maintain Neutral with a target price of Rs250.
No comments:
Post a Comment